“People have been discriminated against simply on the basis of credit history or for simply being unemployed, and as a result, qualified applicants are being denied jobs,” Pawar said. “Every job seeker, regardless of their credit history, deserves a fair shake.

“And this kind of discrimination has profound impacts on seniors, single-income households, immigrants, refugees and parents re-entering the workforce, and finally veterans.”

Pawar, however, backed off a provision that would have prevented asking applicants about gaps in employment history. Business groups had opposed that.

A union representative, an employment coordinator for a human rights group and a lawyer with the Illinois attorney general’s office all told the council’s Human Relations Committee that a troubled credit history has no relationship to poor job performance or theft on the job.

The officials also cited studies that indicate about a third of credit reports contain errors. Minorities are more likely to have poor credit histories, so determining whether to hire on that basis can amount to discrimination, the officials added.

The proposal, set for a full council vote next month, would add “credit history” to many categories against which employment discrimination is banned. Existing categories include race, color, sex, age, religion, disability and sexual orientation.

There would be exceptions for when information about credit history could relate directly to the job.

For example, the measure would allow delving into the credit histories of prospective employees that would have access trade secrets, national security information or assets worth at least $2,500. It also would exempt banks, insurance companies and law-enforcement agencies.